Alliant Holdings launches $825 million credit facilities to investors

By Sara Rosenberg

New York, Oct. 5 – Alliant Holdings Intermediate LLC held a lender call at 11 a.m. ET on Monday to launch $825 million of senior secured credit facilities (B2/B), according to a market source.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities Inc., Truist, BofA Securities Inc., Capital One, Goldman Sachs Bank USA, RBC Capital Markets, Fifth Third, KKR Capital Markets and Macquarie Capital (USA) Inc. are the joint lead arrangers and bookrunners on the deal.

The facilities consist of a $400 million five-year revolver and a $425 million seven-year covenant-lite term loan B-3, the source said.

Price talk on the term loan B-3 is Libor plus 375 basis points with a 0.5% Libor floor and an original issue discount of 99, the source continued.

The term loan B-3 has 101 soft call protection for one year and amortization of 1% per annum.

Proceeds will be used with a $425 million senior secured notes offering, a $350 million add-on senior unsecured notes offering and cash on hand to make a special distribution to the company’s parent, Alliant Holdings LP, to complete acquisitions under letters of intent, and, if any proceeds remain, for general corporate purposes.

Alliant Holdings will use the distribution to repurchase certain equity interests, including equity interests owned by investment funds managed by an affiliate of Stone Point Capital LLC, management and employees.

In conjunction with the term loan financing, the company is seeking an amendment to its existing $2.039 billion covenant-lite term loan B due May 10, 2025 and $523 million covenant-lite term loan B-2 due May 10, 2025 to permit the recapitalization.

The amended term loan B will be priced at Libor plus 325 bps with no-step-down and a 0% Libor floor, and the amended term loan B-2 will remain priced at Libor plus 325 bps with a 0% Libor floor.

Both the term loan B and the term loan B-2 will get 101 soft call protection for one year.

Lenders are being offered a 25 bps amendment fee.

Commitments are due at noon ET on Friday, the source added.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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